Jeddah Commercial Real Estate Market

Jeddah Commercial Real Estate Market, valued at USD 2.2 Bn, is growing due to Vision 2030 diversification, foreign investments, and infrastructure projects, focusing on retail spaces and mixed-use developments.

Region:Middle East

Author(s):Rebecca

Product Code:KRAC0186

Pages:82

Published On:August 2025

About the Report

Base Year 2024

Jeddah Commercial Real Estate Market Overview

  • The Jeddah Commercial Real Estate Market is valued at USD 2.2 billion, based on a five-year historical analysis. This growth is primarily driven by increasing urbanization, a surge in population, and significant investments in infrastructure and tourism, particularly in light of the Vision 2030 initiative aimed at diversifying the economy and enhancing the real estate sector .
  • Key players in this market include Jeddah, Riyadh, and Dammam, with Jeddah being a focal point due to its strategic location as a gateway for pilgrims and tourists. The city's ongoing development projects—such as Jeddah Gate and Jeddah Rose—and urban regeneration initiatives further solidify its dominance in the commercial real estate landscape .
  • In 2023, the Saudi government implemented a new regulation aimed at enhancing transparency in real estate transactions. This regulation mandates that all commercial property transactions be registered with the Ministry of Municipal and Rural Affairs, ensuring better oversight and reducing fraudulent activities in the market .
Jeddah Commercial Real Estate Market Size

Jeddah Commercial Real Estate Market Segmentation

By Type:The commercial real estate market in Jeddah is segmented into various types, including office towers, retail spaces, industrial and logistics warehouses, mixed-use developments, hospitality properties, land for commercial development, and specialized assets. Among these, retail spaces have seen significant growth due to increasing consumer demand, the rise of e-commerce, and the expansion of shopping malls and high-street retail. Office towers are also gaining traction as businesses expand and seek modern, flexible workspaces, supported by a healthy development pipeline and new mixed-use projects .

Jeddah Commercial Real Estate Market segmentation by Type.

By End-User:The end-user segmentation of the commercial real estate market in Jeddah includes multinational corporations, local enterprises and SMEs, government and public sector entities, retail chains and franchises, institutional investors, and others. Multinational corporations are the leading end-users, driven by the city's strategic location, the influx of foreign investments, and government initiatives that have increased demand for office spaces and commercial facilities .

Jeddah Commercial Real Estate Market segmentation by End-User.

Jeddah Commercial Real Estate Market Competitive Landscape

The Jeddah Commercial Real Estate Market is characterized by a dynamic mix of regional and international players. Leading participants such as Emaar The Economic City, Jeddah Economic Company, Jabal Omar Development Company, Dar Al Arkan Real Estate Development Company, Kingdom Holding Company, Al Rajhi Investment, Sedco Holding, Makkah Construction and Development Company, Al Oula Real Estate Development Company, Al Jomaih Holding Company, Al-Faisaliah Group, Al-Muhaidib Group, Al-Suwaidi Holding Company, Al-Mabani General Contractors, Al-Bawani Company contribute to innovation, geographic expansion, and service delivery in this space.

Emaar The Economic City

2006

Jeddah, Saudi Arabia

Jeddah Economic Company

2009

Jeddah, Saudi Arabia

Jabal Omar Development Company

2006

Mecca, Saudi Arabia

Dar Al Arkan Real Estate Development Company

1994

Riyadh, Saudi Arabia

Kingdom Holding Company

1980

Riyadh, Saudi Arabia

Company

Establishment Year

Headquarters

Portfolio Size (Gross Leasable Area, Number of Properties)

Occupancy Rate (%)

Revenue Growth Rate (%)

Average Lease Duration (Years)

Customer Satisfaction Index (Survey-Based)

Market Penetration Rate (%)

Jeddah Commercial Real Estate Market Industry Analysis

Growth Drivers

  • Economic Diversification Initiatives:The Saudi Vision 2030 plan aims to reduce the economy's dependence on oil, targeting a 50% contribution from non-oil sectors in the future. This initiative has led to the establishment of various economic zones, attracting investments exceeding SAR 200 billion. The focus on sectors like tourism and entertainment is expected to drive demand for commercial real estate, with an anticipated increase in office space requirements by 15% in emerging districts.
  • Infrastructure Development Projects:Jeddah is undergoing significant infrastructure upgrades, with over SAR 100 billion allocated for projects like the Jeddah Public Transport Project and the development of the Jeddah Waterfront. These projects are projected to enhance connectivity and accessibility, leading to a 20% increase in commercial property values in the vicinity. Improved infrastructure is crucial for attracting businesses and fostering economic growth in the region.
  • Increased Foreign Investment:In the future, foreign direct investment (FDI) in Saudi Arabia is expected to reach SAR 30 billion, with Jeddah being a key beneficiary. The government has introduced reforms to ease investment restrictions, resulting in a 25% increase in foreign investments in the real estate sector. This influx is likely to stimulate demand for commercial properties, particularly in sectors like retail and hospitality, enhancing the overall market landscape.

Market Challenges

  • Regulatory Hurdles:The Jeddah commercial real estate market faces significant regulatory challenges, including complex zoning laws and lengthy approval processes. In the future, it is estimated that 40% of development projects experience delays due to regulatory compliance issues. These hurdles can deter potential investors and slow down project timelines, impacting overall market growth and investor confidence in the region.
  • Market Saturation in Key Areas:Certain districts in Jeddah are experiencing market saturation, particularly in the retail and office segments. With over 1.5 million square meters of new office space expected to enter the market in the future, vacancy rates could rise to 20%. This saturation may lead to increased competition among landlords, driving down rental prices and affecting overall profitability for property owners.

Jeddah Commercial Real Estate Market Future Outlook

The Jeddah commercial real estate market is poised for transformation, driven by ongoing economic diversification and infrastructure enhancements. As the city evolves, demand for innovative spaces, such as co-working and mixed-use developments, is expected to rise. Additionally, the integration of smart technologies in buildings will likely become a standard, improving operational efficiency. With a focus on sustainability, developers are anticipated to prioritize eco-friendly projects, aligning with global trends and enhancing the market's attractiveness to investors and tenants alike.

Market Opportunities

  • Emerging Business Districts:The development of new business districts, such as the Jeddah Economic City, presents significant opportunities for commercial real estate. With an investment of SAR 75 billion, this project aims to create a hub for businesses, potentially generating over 100,000 jobs and increasing demand for office spaces by 30% in the future.
  • Technological Integration in Real Estate:The rise of PropTech in Jeddah offers opportunities for enhancing property management and tenant experiences. In the future, investments in smart building technologies are expected to exceed SAR 5 billion, improving energy efficiency and operational costs. This trend will attract tech-savvy tenants and investors, further driving growth in the commercial real estate sector.

Scope of the Report

SegmentSub-Segments
By Type

Office Towers

Retail Spaces (Shopping Malls, Strip Malls, High Street Retail)

Industrial & Logistics Warehouses

Mixed-Use Developments

Hospitality Properties (Hotels, Serviced Apartments)

Land for Commercial Development

Specialized Assets (e.g., Data Centers, Exhibition Centers)

By End-User

Multinational Corporations

Local Enterprises & SMEs

Government & Public Sector

Retail Chains & Franchises

Institutional Investors & REITs

Others

By Investment Source

Domestic Investors

Foreign Direct Investment (FDI)

Public-Private Partnerships (PPP)

Sovereign Wealth Funds

Others

By Application

Business & Corporate Use

Retail & Consumer Use

Industrial & Logistics Use

Hospitality & Tourism

Others

By Price Range

Affordable Segment

Mid-Range Segment

Premium Segment

Luxury Segment

Others

By Location

Central Business Districts (e.g., Al-Balad, King Abdullah Road)

Suburban Commercial Zones

Emerging Districts (e.g., Jeddah Waterfront, Jeddah Central)

Airport & Port Vicinity

Others

By Development Stage

Planned/Pre-Construction

Under Construction

Recently Completed

Renovated/Refurbished

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Housing, Saudi Arabian General Investment Authority)

Real Estate Developers

Property Management Companies

Construction Firms

Financial Institutions (e.g., Banks, Investment Funds)

Real Estate Investment Trusts (REITs)

Commercial Tenants and Corporations

Players Mentioned in the Report:

Emaar The Economic City

Jeddah Economic Company

Jabal Omar Development Company

Dar Al Arkan Real Estate Development Company

Kingdom Holding Company

Al Rajhi Investment

Sedco Holding

Makkah Construction and Development Company

Al Oula Real Estate Development Company

Al Jomaih Holding Company

Al-Faisaliah Group

Al-Muhaidib Group

Al-Suwaidi Holding Company

Al-Mabani General Contractors

Al-Bawani Company

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Jeddah Commercial Real Estate Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Jeddah Commercial Real Estate Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Jeddah Commercial Real Estate Market Analysis

3.1 Growth Drivers

3.1.1 Economic Diversification Initiatives
3.1.2 Infrastructure Development Projects
3.1.3 Increased Foreign Investment
3.1.4 Urbanization Trends

3.2 Market Challenges

3.2.1 Regulatory Hurdles
3.2.2 Market Saturation in Key Areas
3.2.3 Economic Fluctuations
3.2.4 Competition from Alternative Investments

3.3 Market Opportunities

3.3.1 Emerging Business Districts
3.3.2 Technological Integration in Real Estate
3.3.3 Sustainable Development Projects
3.3.4 Growth in E-commerce and Logistics

3.4 Market Trends

3.4.1 Rise of Co-working Spaces
3.4.2 Increased Demand for Mixed-Use Developments
3.4.3 Smart Building Technologies
3.4.4 Focus on Sustainability and Green Buildings

3.5 Government Regulation

3.5.1 Real Estate Investment Trusts (REITs) Regulations
3.5.2 Zoning Laws and Land Use Policies
3.5.3 Tax Incentives for Developers
3.5.4 Building Code Compliance Requirements

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Jeddah Commercial Real Estate Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Jeddah Commercial Real Estate Market Segmentation

8.1 By Type

8.1.1 Office Towers
8.1.2 Retail Spaces (Shopping Malls, Strip Malls, High Street Retail)
8.1.3 Industrial & Logistics Warehouses
8.1.4 Mixed-Use Developments
8.1.5 Hospitality Properties (Hotels, Serviced Apartments)
8.1.6 Land for Commercial Development
8.1.7 Specialized Assets (e.g., Data Centers, Exhibition Centers)

8.2 By End-User

8.2.1 Multinational Corporations
8.2.2 Local Enterprises & SMEs
8.2.3 Government & Public Sector
8.2.4 Retail Chains & Franchises
8.2.5 Institutional Investors & REITs
8.2.6 Others

8.3 By Investment Source

8.3.1 Domestic Investors
8.3.2 Foreign Direct Investment (FDI)
8.3.3 Public-Private Partnerships (PPP)
8.3.4 Sovereign Wealth Funds
8.3.5 Others

8.4 By Application

8.4.1 Business & Corporate Use
8.4.2 Retail & Consumer Use
8.4.3 Industrial & Logistics Use
8.4.4 Hospitality & Tourism
8.4.5 Others

8.5 By Price Range

8.5.1 Affordable Segment
8.5.2 Mid-Range Segment
8.5.3 Premium Segment
8.5.4 Luxury Segment
8.5.5 Others

8.6 By Location

8.6.1 Central Business Districts (e.g., Al-Balad, King Abdullah Road)
8.6.2 Suburban Commercial Zones
8.6.3 Emerging Districts (e.g., Jeddah Waterfront, Jeddah Central)
8.6.4 Airport & Port Vicinity
8.6.5 Others

8.7 By Development Stage

8.7.1 Planned/Pre-Construction
8.7.2 Under Construction
8.7.3 Recently Completed
8.7.4 Renovated/Refurbished
8.7.5 Others

9. Jeddah Commercial Real Estate Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Portfolio Size (Gross Leasable Area, Number of Properties)
9.2.3 Occupancy Rate (%)
9.2.4 Revenue Growth Rate (%)
9.2.5 Average Lease Duration (Years)
9.2.6 Customer Satisfaction Index (Survey-Based)
9.2.7 Market Penetration Rate (%)
9.2.8 Average Rental Yield (%)
9.2.9 Return on Investment (ROI) (%)
9.2.10 Net Operating Income (NOI, SAR/USD)
9.2.11 Development Pipeline (Upcoming Projects, sqm)
9.2.12 ESG/Green Building Certification Status

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Emaar The Economic City
9.5.2 Jeddah Economic Company
9.5.3 Jabal Omar Development Company
9.5.4 Dar Al Arkan Real Estate Development Company
9.5.5 Kingdom Holding Company
9.5.6 Al Rajhi Investment
9.5.7 Sedco Holding
9.5.8 Makkah Construction and Development Company
9.5.9 Al Oula Real Estate Development Company
9.5.10 Al Jomaih Holding Company
9.5.11 Al-Faisaliah Group
9.5.12 Al-Muhaidib Group
9.5.13 Al-Suwaidi Holding Company
9.5.14 Al-Mabani General Contractors
9.5.15 Al-Bawani Company

10. Jeddah Commercial Real Estate Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Housing
10.1.2 Ministry of Municipal and Rural Affairs
10.1.3 Ministry of Finance
10.1.4 Ministry of Commerce

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Corporate Investments in Real Estate
10.2.2 Infrastructure Development Budgets
10.2.3 Energy Efficiency Initiatives

10.3 Pain Point Analysis by End-User Category

10.3.1 Cost of Acquisition
10.3.2 Regulatory Compliance Issues
10.3.3 Market Transparency

10.4 User Readiness for Adoption

10.4.1 Technology Adoption in Real Estate
10.4.2 Investment Readiness

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 ROI Measurement Techniques
10.5.2 Use Case Expansion Opportunities

11. Jeddah Commercial Real Estate Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 JVs

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of real estate market reports from local and international agencies
  • Review of government publications and economic indicators relevant to Jeddah
  • Examination of property transaction data and historical pricing trends

Primary Research

  • Interviews with real estate developers and property managers in Jeddah
  • Surveys targeting commercial property investors and brokers
  • Field visits to key commercial districts to assess market conditions

Validation & Triangulation

  • Cross-validation of findings with multiple data sources, including market reports and expert opinions
  • Triangulation of qualitative insights from interviews with quantitative data from surveys
  • Sanity checks through expert panel reviews and feedback sessions

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total commercial real estate value based on national GDP contributions
  • Segmentation of the market by property type (office, retail, industrial)
  • Incorporation of demographic trends and urbanization rates in Jeddah

Bottom-up Modeling

  • Data collection on rental rates and occupancy levels from key commercial properties
  • Analysis of construction activity and pipeline projects in the region
  • Estimation of market size based on square footage and average rental prices

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating economic growth, population trends, and investment flows
  • Scenario modeling based on potential regulatory changes and market disruptions
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Office Space Leasing100Property Managers, Corporate Real Estate Executives
Retail Property Investment80Retail Developers, Investment Analysts
Industrial Real Estate Trends70Logistics Managers, Industrial Property Owners
Commercial Property Valuation50Real Estate Appraisers, Financial Analysts
Market Entry Strategies60Business Development Managers, Market Analysts

Frequently Asked Questions

What is the current value of the Jeddah Commercial Real Estate Market?

The Jeddah Commercial Real Estate Market is valued at approximately USD 2.2 billion, driven by urbanization, population growth, and significant investments in infrastructure and tourism, particularly under the Vision 2030 initiative.

What are the main types of commercial real estate in Jeddah?

Who are the key players in the Jeddah Commercial Real Estate Market?

What are the growth drivers for the Jeddah Commercial Real Estate Market?

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